On June 13th, Geelong reported that Grand Ming Group (01271.HK) expects its revenue for the current fiscal year ending March 31, 2024 to decline significantly by about 90% compared to the revenue of HKD 5.005 billion and net profit of HKD 1.275 billion for the fiscal year ending March 31, 2023. Net profit is expected to record a decline of between 70% and 80%.

The announcement stated that the significant decline in revenue this year was mainly due to a significant decrease in the number of properties sold from property development projects. The decline in net profit this year was mainly due to (i) the significant decrease in revenue and profit recognized by the property development division due to the aforementioned decrease in the number of properties sold; (ii) the increase in interest rates resulting in an increase in financial costs; but partially offset by the income from the re-evaluated investment properties under development for this fiscal year.